Risk Management , Internal Control-Your company, Medical Devices R Us, is a medical device product de
Question # 00050522
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Updated on: 02/24/2015 08:48 AM Due on: 02/28/2015
Risk Management / Internal Controls (3-5 pages)
Your company, Medical Devices R Us, is a medical device product design and manufacturing company with $3 billion in annual sales. The company has been in business for 30 years. The medical devices industry is very competitive with short product life cycles and worldwide competition. The company's business has been growing at 5% a year for the last 10 years with about 20% of that growth occurring in Asia.
Medical Devices R Us has historically designed and manufactured all its products in the U.S. The company is considering outsourcing some of their product design and manufacturing to a company in Taiwan. The company in Taiwan has been designing and manufacturing their own medical devices for less than ten years. Currently their products are not as high value-added as the ones from Medical Devices R Us. At present none of the products manufactured by the company in Taiwan directly compete with those of Medical Devices R Us.
The internal auditing department has been asked to perform a review prior to a final decision being made. In order to understand the industry and current trends, you should do research. There is at least one association dedicated to medical device outsourcing as well as one professional magazine. Scanning 10K reports of companies in this industry as well as somewebsites of regulators such as the FDA would be beneficial. You are encouraged to identify your own information sources.
Your report needs to cover the following items:
1) What are the key business objectives for Medical Devices R Us? You are free to make assumptions but a) base it on some research of the industry and b) note your assumptions in your paper.
2) Describe the most significant business risks involved in this outsourcing decision? You should identify at least six risks. Your business risks should be related to the achievement of the business objectives.
3) How should each risk identified above be managed? What internal controls do you recommend be implemented and why? Be specific.
4) You paper should include an appendix with a heat map or risk-control matrix. The appendix does not count as one of the three pages per the guideline.
In order to understand the industry and current trends, you need to do research (e.g.'s 10-K reports of companies in this industry as well as websites of regulators such as the FDA). You are encouraged to identify your own information sources.
Your company, Medical Devices R Us, is a medical device product design and manufacturing company with $3 billion in annual sales. The company has been in business for 30 years. The medical devices industry is very competitive with short product life cycles and worldwide competition. The company's business has been growing at 5% a year for the last 10 years with about 20% of that growth occurring in Asia.
Medical Devices R Us has historically designed and manufactured all its products in the U.S. The company is considering outsourcing some of their product design and manufacturing to a company in Taiwan. The company in Taiwan has been designing and manufacturing their own medical devices for less than ten years. Currently their products are not as high value-added as the ones from Medical Devices R Us. At present none of the products manufactured by the company in Taiwan directly compete with those of Medical Devices R Us.
The internal auditing department has been asked to perform a review prior to a final decision being made. In order to understand the industry and current trends, you should do research. There is at least one association dedicated to medical device outsourcing as well as one professional magazine. Scanning 10K reports of companies in this industry as well as somewebsites of regulators such as the FDA would be beneficial. You are encouraged to identify your own information sources.
Your report needs to cover the following items:
1) What are the key business objectives for Medical Devices R Us? You are free to make assumptions but a) base it on some research of the industry and b) note your assumptions in your paper.
2) Describe the most significant business risks involved in this outsourcing decision? You should identify at least six risks. Your business risks should be related to the achievement of the business objectives.
3) How should each risk identified above be managed? What internal controls do you recommend be implemented and why? Be specific.
4) You paper should include an appendix with a heat map or risk-control matrix. The appendix does not count as one of the three pages per the guideline.
In order to understand the industry and current trends, you need to do research (e.g.'s 10-K reports of companies in this industry as well as websites of regulators such as the FDA). You are encouraged to identify your own information sources.
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Rating:
/5
Solution: Risk Management , Internal Control-Your company, Medical Devices R Us, is a medical device product de